According to Bloomberg, two large institutional shareholders are planning to vote against the sweetened offer to pay 16.00 Canadian share for each share in Dorel Industries made a few days ago by Cerberus Capital Management to take the company private. They say that, while it is higher than an initial offer of C$14.50 per share, the new price “significantly undervalues” the company. Both investors essentially feel that the company’s prospects have improved because of the boost given to cycling by the Covid-19 pandemic. They also point out that members of the controlling Schwarz family are not selling their shares, presumably because they know the company’s future better than anybody else. The two shareholders are Letko, Brosseau & Associates, which owns about 12.2 percent of Dorel’s shares, and Brandes Investment Partners, which holds another 7 percent on behalf of its clients.
Related articles
-
ArticleSnowleader raises €15 million
Thomas Roualt, founder and CEO, has announced on his LinkedIn page that Snowleader has raised €15 million in a fourth round of financing in 15 years (the company turned 15 years old last year). According to Fusacq and others, half of the funds stem from equity capital and half from ...
-
ArticleNew CFO for Kent Outdoors, secures $100m credit facility, plans sale of bike business
US group Kent Outdoors, which comprises 15 outdoor and action sports brands, including HO/Hyperlite, Connelly, Liquid Force, Onyx, Aquaglide, Barefoot/Fatsac and Bote, has appointed Rob Otto to the company’s leadership team as Chief Financial Officer. Otto joined Kent after successfully completing the sale of RW Designs, a wholesale and direct ...
-
OpinionCorporate social responsibility - could this be a way to reduce staff fluctuation?
There has been a culture change towards employment in my lifetime: no longer are workers expecting jobs for life. The change has already happened but is sparking something greater with those affected. My graduating students realize they need work skills and know that a period of attachment with a brand ...
More from Corporate and M&A
-
ArticleVista Outdoor leaves option open to sell to MNC for higher price
The uncertainty surrounding the future of Vista Outdoor, respectively Revelyst and The Kinetic Group, continues as the company officially confirmed on April 22 that it has resumed negotiations with Montréal-based MNC Capital in connection with the unsolicited expression of interest dated March 25, 2024, in which MNC indicated it was ...
-
ArticleSwedish Supreme Court confirms reorganization plan for Sportshopen’s parent
On 15 April, the Swedish Supreme Court confirmed the restructuring plan for Swedemount Sportswear & Fashion AB. The majority of Swedemount’s suppliers and creditor groups had already voted to confirm the restructuring plan in December last year, which was subsequently approved by both the District Court and the Court of ...
-
News briefsRose Bikes with revenue record: Strong 2023 performance despite market challenges
In the fiscal year ending October 31, 2023, Rose Bikes’ total revenue was €189 million, a nine percent increase from the previous year.